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Indian equity benchmarks ended lower, halting their two-day gaining streak after hitting record highs in the opening trade.
The S&P BSE Sensex fell 0.17 percent to end at 40,821.30 and the NSE Nifty 50 fell 0.3 percent to end at 12,037.70. The broader markets represented by the NSE Nifty 500 Index fell 0.4 percent.
The 31-share index had risen as much as 0.57 percent to cross 41,000 for the first time during the opening trade. The 50-stock gauge had risen 0.49 percent intraday to surpass its previous record high of 12,103.05.
The NSE Nifty 50 may be trading at a record high, but that may not be cause for comfort, according to Basant Maheshwari, co-founder of Basant Maheshwari Wealth Advisers LLP.
“The (Nifty) small-cap index is 47 percent off its record high. (That) portfolio is bleeding in the red,” he told BloombergQuint in an interaction. “That's the real problem.”
Foreign institutional investors, he said, are net short in the derivatives market and haven’t covered their shorts yet. And that, according to him, would decide whether the Nifty would sustain its record high. “If you go by anecdotal historical evidence, till the time foreign investors go net long in the derivative markets, Nifty will not sustain its all-time high.”
To decisively move towards 12,500-13,000, which Maheshwari expects to happen in the next three-to-four months, foreigners must buy “big lock, stock, and barrel”.
The market breadth was tilted in favour of sellers. About 1,020 stocks declined and 786 shares advanced on National Stock Exchange.
Eight out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 3.63 percent fall. On the flipside, the NSE Nifty Private Bank Index was the top sectoral gainer, up 0.61 percent.
Cholamandalam Financial Holdings
Mahindra CIE Automotive
Greaves Cotton
Info Edge India
Himadri Special Chemical
Shares of Bharti Airtel fell as much as 4.2 percent to Rs 432.55. The stock was the worst performer on Sensex and Nifty.
Of the shares traded, 43 percent were at the ask price and 43 percent were at the bid, according to Bloomberg data. The scrip declined 1.2 percent in the past five days and advanced 16 percent in the past 30 days, Bloomberg data showed.
Indian equity benchmarks reversed gains and traded at day’s low.
The S&P BSE Sensex fell 0.3 percent to 40,778 and the NSE Nifty 50 fell 0.34 percent.
CSB Bank’s Rs 410-crore initial public offering was subscribed 9.67 times as of 1 p.m. on the final day of bidding today.
Stocks were mixed on Tuesday after China said Sino-American trade negotiators had another phone call, agreeing to stay in contact as the oft-discussed phase-one deal remains on the horizon.
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Source: Bloomberg
RBI Deputy Governor MK Jain says:
Shares of Mahanagar Gas rose as much as 1.7 percent to Rs 1,053, while shares of Gujarat Gas rose as much as 5.7 percent to Rs 201.95.
That comes after brokerage firm Macquarie hiked the price target for both the stocks.
Here’s what the research firm had to say:
On Gujarat Gas
On Mahanagar Gas
Shares of Thomas Cook rose as much as 11 percent, the most since Oct. 31, to Rs 170.
The company said that it has completed its corporate restructuring process and demerged its human resources business to Quess Corp.
Each shareholder of Thomas Cook India will accordingly be issued 1,889 shares of Quess Corp of Rs 10 for every 10,000 fully paid up equity shares of Re 1 each.
The record date set for the afore-mentioned scheme at Dec. 6.
Besides, the company also completed the demerger of the inbound business undertaking of Travel Corporation India into SOTC Travel Management and amalgamation of residual Travel Corporation India, TC Travel Services and TC Forex Services with Thomas Cook India.
About 13.5 lakh shares of NCC changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Shares of InterGlobe Aviation fell as much a 4.3 percent to Rs 1,388.50.
India’s aviation regulator has directed the country’s largest airline to ground one Airbus A320neo plane with unmodified Pratt & Whitney engines for every new A320neo it inducts to its fleet, according to PTI report.
The directive comes less than two weeks after the Directorate General of Civil Aviation, or DGCA, gave IndiGo more time to modify Pratt & Whitney engines powering its Airbus A320neo planes.
The NSE Nifty 50 may be trading at a record high, but that may not be cause for comfort, according to Basant Maheshwari, co-founder of Basant Maheshwari Wealth Advisers LLP.
“The (Nifty) small-cap index is 47 percent off its record high. (That) portfolio is bleeding in the red,” he told BloombergQuint in an interaction. “That's the real problem.”
Foreign institutional investors, he said, are net short in the derivatives market and haven’t covered their shorts yet. And that, according to him, would decide whether the Nifty would sustain its record high. “If you go by anecdotal historical evidence, till the time foreign investors go net long in the derivative markets, Nifty will not sustain its all-time high.”
To decisively move towards 12,500-13,000, which Maheshwari expects to happen in the next three-to-four months, foreigners must buy “big lock, stock, and barrel”.
Nifty’s 12,000 put option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on Nov. 28, fell 29.14 percent to Rs 18.85. Over 4.49 lakh shares were added to the open interest which stood at over 53.17 lakh shares.
Shares of Dish TV, NBCC and Castrol fell while shares of Tata Motors-DVR fluctuated between gains and losses as the stocks will be excluded from F&O Segment. No contract to be made available for trading from Jan. 31, 2020.
Shares of Star Cement rose as much as 5.2 percent to Rs 100.55.
About 10.4 lakh shares of the company changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Trading volume was more than three times its 20-day average, Bloomberg data showed. Of the shares traded, 47 percent were at the ask price and 49 percent were at the bid.
Shares of Zee Entertainment Enterprises extended declines for the second consecutive trading session. The stock fell as much as 9.1 percent to Rs 312.40.
That comes after Media baron Subhash Chandra stepped down as chairman of the company, a week after debt-ridden promoters’ holding in the broadcaster fell to 5 percent after selling additional stake.
The company’s board accepted Chandra’s resignation as chairman with immediate effect, according to an exchange filing. He, however, stays as a non-executive director.
Trading volume was more than two times its 20-day average, according to Bloomberg data. Of the shares traded, 37 percent were at the ask price and 47 percent were at the bid.
Indian equity benchmarks are set to open higher.
The S&P BSE Sensex rose 0.32 percent to 41,019 during the pre-market trade and the NSE Nifty 50 rose 0.26 percent to 12,104.
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